Melbourne Rebels and Wallabies forward Scott Higginbotham has endorsed the club's sacking of Test five-eighth James O'Connor, saying it had to happen.

Higginbotham said the 12th-placed Rebels' move not to offer O'Connor a Super Rugby contract for 2014 had nothing to do with his playing ability but was the right decision for the club.

"He has been an outstanding player for the club and he is a Wallaby. No one questions his playing ability," Higginbotham told reporters.

"It was more a selection issue and how the club felt he fitted into the team dynamic.

It was more a selection issue and how the club felt he fitted into the team dynamic.

Scott Higginbotham on James O'Connor

"With a lot of young guys coming through and new guys shining, it was time to start fresh.

"It was a good opportunity and I think it's just what had to happen."

Higginbotham said it would be better for O'Connor to develop his skills and personality at a different club.

The Rebels are keen to retain O'Connor's close friend Kurtley Beale, who has battled alcohol issues and was sent home after clashing with team-mates in Durban in March.

Beale and O'Connor infuriated then Wallabies coach Robbie Deans when they were photographed at a fast-food outlet at 4:00am a few days before the second Test against the British and Irish Lions in Melbourne.

"He's a great team player and the rest of the playing group really do enjoy and love playing with him," said Higginbotham, who will miss Friday's season-ending home game against the Highlanders with hip and shoulder injuries.

"If he sorts out those off-field issues, then there is no issue with him."